"We are focusing hard on driving our business, particularly in the fourth quarter towards stronger earnings," said Ursula Burns, Chairman and CEO of Xerox, discussing the 2013 outlook for her company, although the stock is down about twenty percent this year.

More than half of Xerox's revenue comes from services, after it bought Affiliated Computer Services Inc for $5.5 billion in 2009, but investment in those operations has put pressure on margins.

Xerox expects services to grow to two-thirds of revenue by 2017, "not only driven by the fact we are growing that portion of the business but because the market's transitioning, customers are transitioning," Burns said. "They want more than a point solution."

The company had forecast a fourth-quarter profit of 29 cents to 31 cents per share and adjusted earnings of 33 cents to 35 cents per share, excluding the charge.

Xerox said on Tuesday it increased its share buyback program by $1 billion and will raise its dividend by 35 percent to 5.75 cents per quarter, beginning with the dividend payable on April 30, 2013.